Aixtron AIXG now listed on the NASDAQ after GGNS merger Message Board

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Technology Stocks : Aixtron AIXG now listed on the NASDAQ after GGNS merger

AIXG 3.060

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Jul 18 5:00 PM EST

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To: Sam Citron who wrote (164)	10/1/2009 12:36:38 PM
From: CMLM	1 Recommendation Read Replies (1) of 185

glgroup.com Short supply of MOCVD tool hampers LED supply October 1, 2009 PrintEmail to a FriendAnalysis by: Munisamy Anandan Analysis of: Global shortage of epitaxial LED wafers will not ease until 2012, says Epistar chairman Published at: www.digitimes.com Summary (1) There are only two major suppliers for MOCVD tool for the entire LED chip manufacturing industry and any boom in LED market will put heavy pressure on these two suppliers (2) LED lighting market and LEB backlight for notebook are growing rapidly and to meet this demand a competitor for MOCVD tool needs to be born. (3) Is it time to refresh the rumor of Applied Materials Inc coming in to this game? Learn what Gerson Lehrman Group can do for you Analysis The news item is from Epistar which bought 150th MOCVD tool from Aixtron. They had celebration for the 150th tool. According to the news, the demand for LEDs in Notebook alone is 25 Billion in 2010. To meet this demand alone 140 MOCVD tools are required by LED chip manufacturers. They need to run at full capacity utilization. The tool makers can procure only 100 tools although orders have been already placed. On top of this the demand for lighting market is not taken in to the equation. Once the tools are received it takes one year to supply the chips to the customers. in 2010 short supply of LEDs are expected. There are three known MOCVD tool manufacturers and they are (i) Veeco (ii) Aixtron (iii) Taiyo Nippon Sanso Corp. The two major tool manufacturers are the first two and they dominate the entire global market. They can not meet the global demand for the tools. There was a rumor for sometime that Applied Materials Inc may enter this market. Applied Materials Inc has MOCVD process but that is for 'trench coating' in ICs using TiN process. They do not have InGaN process. The MOCVD process for LED fabrication is a complicated process. Any big company like Applied Materials Inc wants to grab the opportunity of the booming demand for LED, the quickest way of seizing the opportunity is either through partnership with the expert companies or acquisition of the major players. Veeco or Aixtron is not for sale but may be for partnership. Whatever happens is not going the ease the LED supply position. White LED supply in 2010 will be tight and the price of white LED will rise because the price is already at the bottom. There will be a rise in Notebook price that employ LED backlight. This may be the time for CCFL backlight to be back with more share it lost to LED backlight.

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